How far can luxury brands travel: avoiding the pitfalls of luxury brand extension

Reddy, Mahendra

doi:10.1108/sd.2010.05626aad.001

Cited by 24 publications

(38 citation statements)

References 12 publications

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“…As pointed out by Czellar (2003), the vast majority of existing research focuses thus on consumer characteristics, predominantly rooted in cognitive psychology (e.g., Aaker and Keller, 1990;Park et al, 1991;Broniarczyk and Alba, 1994;Bhat and Reddy, 2001;Monga and John, 2010), and pays little attention to other factors such as consumer heterogeneity, competitor and distributor activity. Moreover, only few scholars have investigated brand extensions from a managerial perspective such as profitability and the decision-making process (e.g., Riley et al, 2004;Reddy et al, 2009). In general, research neglects external factors such as industry structure and the general context.…”

Section: Research Gap: the Relevance Of The Studymentioning

confidence: 99%

“…Although some of the overall findings from non-luxury studies seem to be generalisable for luxury brands (Albrecht et al 2013), insights gained from such studies should be treated with caution as it is widely recognised that luxury brands are inherently different from non-luxury brands (Vickers and Renand, 2003;Völckner and Sattler, 2007;Hagtved and Patrick, 2009). Yet, little research has addressed brand extension specific for luxury brands (e.g., Riley et al, 2004;Hagtved and Patrick, 2009;Reddy et al, 2009;Stankeviciute and Hoffmann, 2011;Magnoni and Roux, 2012;Albrecht et al, 2013) and to our knowledge none of the academic studies conducted at this point in time suggests an integrative approach to investigate the key success factors behind brand and line extensions.…”

Section: Research Gap: the Relevance Of The Studymentioning

confidence: 99%

“…As expressed by Bernard Arnault, Chairman and CEO of LVMH: "Some brands […] have slid off the map of prestigious goods to become a sort of mass market luxury items" [The Economist, (2003), p.67 referred in Riley et al, (2004), p.41]. This potential dilution of the parent brand (John and Loken, 1993;John et al, 1998;Stegemann, 2006;Hagtved and Patrick, 2009;Keller and Sood, 2012) cannot only lead to loss of exclusivity (Pitta and Katsanis, 1995), but also to a reduced perception of quality (Aaker and Keller, 1990;Dacin and Smith, 1994;Völckner and Sattler, 2006) and decreased profitability (Jacobson and Lane, 1997;Reddy et al, 2009). …”

Section: Introductionmentioning

confidence: 99%

“…Nevertheless, due to the emergence of a "new normal" in the aftermath of the economic crisis in terms of a maturing global market and an increasingly consolidated market place, brands cannot only rely on market booms as a means to growth (Fondazione Altagamma, 2014). Instead, future growth will mainly be propelled by selling higher volumes and increasing price points (Achille, 2014), for example by diversifying into new product categories (Reddy et al, 2009), product markets or industries (Ansoff, 1988).…”

Section: Introductionmentioning

confidence: 99%

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Brand and line extensions: an empirical study from the new age luxury industry

Som

Pape

2015

LRJ

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Brand and line extensions represent an essential vehicle for growth and are currently one of the most applied marketing strategies within the luxury sector. Though it has its advantages, there are several risks associated with pursuing such a strategy. Consequently, this paper attempts to understand the key success factors behind brand and line extension in the new era of luxury expansion. An integrative model of key success factors is proposed by combining current research with empirical findings obtained through an explorative and qualitative research design based on primary data from eight semi-structured interviews with managers from luxury brands. We identify five key success factors: 1) add value through originality; 2) stay at the level of the brand regarding price, quality, style and image; 3) create relevance to core business and be aligned with DNA; 4) stick to the vision of the founder; 5) assure consistency in brand identity and image.Keywords: brand and line extension; key success factors; new age luxury; luxury brand growth; the future of luxury; empirical study; qualitative research; institutional perspective.Reference to this paper should be made as follows: Som, A. and Pape, N. (2015) 'Brand and line extensions: an empirical study from the new age luxury

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Section: Research Gap: the Relevance Of The Studymentioning

confidence: 99%

Section: Research Gap: the Relevance Of The Studymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Brand and line extensions: an empirical study from the new age luxury industry

Som

Pape

2015

LRJ

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“…Moreover, studies on the impact of vertical brand extensions have been limited to explicit measurement methods (McCarthy et al, 2001;Riley et al, 2004;Reddy et al, 2009;Ginman et al, 2010). These results are restricted in their significance as recent findings indicate that perception and attitude change unconsciously in the minds of customers and, consequently, cannot explicitly queried (Scheier, 2007).…”

mentioning

confidence: 99%

Brand extensions

Hennigs

Wiedmann

Behrens

et al. 2013

Journal of Fashion Marketing and Management: An International Journal

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. Purpose -Although the investigation of brand extension strategies has gained importance, existing research focusses primarily on consumer attitudes to brand extensions, and to date, little research has been made on the luxury market. Moreover, studies on the impact of brand extensions have been limited to explicit measurement methods. Therefore, the aim of this study is to provide new insights by focussing on the change of consumers' brand perception related to downgrading and upgrading brand extensions strategies in the luxury market based on an implicit association test (IAT). Design/methodology/approach -In this exploratory study context of examining the spontaneous reaction time with reference to the luxury concept by confronting respondents with adequate verbal brand extension stimuli, a ST-IAT was considered for the empirical tests of these hypotheses. Findings -The study results give evidence that consumers' perception of an upgrading or downgrading strategy of a brand varies in accordance to these hypotheses. Hence, the reaction time of the H&M subjects decreased after having read the upgrading stimulus whereby, in the case of Karl Lagerfeld, the ST-IAT reaction times showed that the downgrading information resulted in a weaker association of Karl Lagerfeld with luxury. Originality/value -The use of implicit measurement methods is becoming increasingly important for assessing consumer reaction to the new product line. Particularly, when luxury brands apply a downgrading strategy, the risks of possible damages to the core brand are much higher than in the case of an upgrade of a basic brand to the luxury or premium segment.

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Is HUGO still the BOSS? Investigating the reciprocal effects of brand extensions on brand personality of luxury brands

Phau

Matthiesen

Shimul

2020

Australasian Marketing Journal

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This research aims to empirically investigate positive and negative reciprocal effects of extensions on brand personality by varying levels of congruency and typicality, while controlling for the effects of motivation processing. A 2 (incongruent, congruent) × 2 (high typicality, low typicality) × 2 (high motivation, low motivation) research design was employed using two extension categories, namely watches and kidswear of the HUGO BOSS brand. The findings revealed brand personality dilution effects only. Specifically, brand personality dilution occurred in response to incongruent and congruent information. Further, contrary to schema theory, brand personality evaluations neither strictly followed the bookkeeping model in high-motivation conditions nor the subtyping model in low-motivation conditions in response to incongruent information.

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How far can luxury brands travel: avoiding the pitfalls of luxury brand extension

Cited by 24 publications

References 12 publications

Brand and line extensions: an empirical study from the new age luxury industry

Brand and line extensions: an empirical study from the new age luxury industry

Brand extensions

Is HUGO still the BOSS? Investigating the reciprocal effects of brand extensions on brand personality of luxury brands

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